Assam ASSEB HS Entrepreneurship Development key terms

The process of spotting a need, gathering resources and taking on risk to create a new venture that delivers value. It combines innovation with organised action rather than mere ownership of a business.

A person who converts an idea into a functioning enterprise by arranging land, labour, capital and information, and who accepts the uncertainty of gain or loss from that venture.

Accepting the possibility of financial loss or failure in return for the chance of profit. It is a defining function of the entrepreneur because returns are never guaranteed when a new product or market is attempted.

A situation where outcomes cannot be assigned reliable probabilities, unlike measurable risk. Entrepreneurs act under uncertainty because market response, costs and competitor moves are not fully knowable in advance.

An employee who develops a new product, service or process inside an existing organisation, using its resources while carrying limited personal financial risk. The firm gains innovation; the individual gains autonomy and recognition.

A specific business project or new enterprise undertaken with an expectation of profit and an acceptance of possible loss. The term usually signals that the activity is new, uncertain and resource-demanding.

A young enterprise searching for a repeatable, scalable business model, often operating with limited funds and an unproven product. Its priority is learning quickly from customers rather than fine-tuning existing operations.

A combination of knowledge, skill and behaviour that an entrepreneur applies to achieve results, such as initiative, persistence, opportunity seeking or information seeking. Competencies are observable and can be developed through practice and feedback.

Acting without being told, taking the first step and doing more than the minimum required. It shows itself when a person spots a problem and begins solving it before anyone assigns the task.

Continuing effort towards a goal despite setbacks, rejections and slow progress. It differs from stubbornness because the entrepreneur keeps the goal but changes the method when evidence demands it.

The inner drive to meet a self-set standard of excellence and to take personal responsibility for results. People high in this motive prefer moderately challenging tasks with clear feedback over easy or purely chance-based outcomes.

A person's belief about what determines outcomes. An internal locus means effort and decisions matter; an external locus means luck, fate or powerful others dominate. Entrepreneurs generally benefit from an internal orientation.

Confidence in one's own ability to perform a specific task or handle a particular situation. It rises through mastery experiences, role models and encouragement, and it strongly predicts whether a person attempts an uncertain venture.

A habitual way of thinking that treats problems as opportunities, tolerates calculated risk and learns from failure. It can be cultivated through exposure to role models, reflection and repeated small experiments.

The capacity to absorb shocks, recover from failure and keep functioning after a setback. It rests on realistic planning, support networks and the ability to separate personal worth from a failed venture.

The ability to produce ideas that are both novel and useful. It involves fluency, flexibility, originality and elaboration, and it can be stimulated by techniques such as brainstorming and mind mapping.

Turning a creative idea into a practical offering that creates value, whether a new product, service, process or business model. Creativity supplies the idea; innovation carries it through to adoption in the market.

The creation of something new, such as a device, formula or method, that did not exist before. An invention becomes an innovation only when it is applied commercially or socially and adopted by users.

A group technique for generating many ideas in a short time by deferring judgement and encouraging wild suggestions. Ideas are recorded without criticism and screened only after the session ends.

Generating multiple varied answers to an open problem rather than converging on one solution immediately. It is followed by convergent thinking, which screens and selects the most feasible option.

A favourable set of circumstances in which a real customer need can be met profitably with resources the entrepreneur can obtain. It is more than an idea because demand, feasibility and timing have been checked.

A concrete proposal for a product, service or process that could satisfy a customer need. It becomes a viable venture only after market and financial validation.

An unmet or poorly served need in a market, visible as customer complaints, high prices, missing features or untapped segments. Identifying a genuine gap is the starting point of a defensible opportunity.

A structured assessment of whether a proposed venture can work technically, commercially, financially and legally. It precedes the detailed business plan and may recommend dropping or reshaping the idea.

The logic of how a venture creates, delivers and captures value. It states who the customer is, what is offered, how revenue arrives and which costs and partners are essential.

A clear statement of the benefit a customer receives and why the offering is better than the alternatives. A strong proposition is specific, customer-focused and easy to verify.

A written document describing a venture's goals, market, strategy, operations, management and financial projections. It serves both as an internal roadmap and as a tool for convincing lenders, investors and partners.

The smallest version of an offering that lets a team test key assumptions with real users. It is built to learn quickly at low cost, not to be the final or fully polished product.

The systematic study of customers, competitors, prices, distribution and regulations in a target market. It estimates demand size and reveals whether a proposed offering can realistically be sold.

Dividing a broad market into smaller groups with shared needs, behaviour or characteristics. The venture then selects target segments and designs an offer for them rather than trying to serve everyone.

The specific group of customers a venture chooses to serve with its marketing effort. A clear target market guides product features, pricing, promotion channels and sales messages.

The controllable set of decisions a firm combines to reach its target market, usually described as product, price, place and promotion. The elements must reinforce one another to be effective.

The place an offering occupies in the customer's mind relative to competitors. It is shaped by the chosen target segment, the promised benefit and the evidence used to support that promise.

Calculating the sales volume or revenue at which total revenue equals total cost, so profit is zero. It shows the minimum activity needed to avoid loss and how fixed costs and margins interact.

An expense that stays broadly unchanged over a period regardless of output, such as rent, salaries of permanent staff or insurance. Fixed costs raise the sales needed to break even.

An expense that moves directly with the quantity produced or sold, such as raw material, packaging or sales commission. Per-unit variable cost largely sets the floor for pricing decisions.

The difference between selling price and variable cost per unit, which first covers fixed costs and then produces profit. It is central to pricing, product-mix and break-even decisions.

A month-wise forecast of money coming in and going out of the business. It reveals timing gaps when expenses fall due before receipts arrive, which is a common cause of failure in new firms.

The funds tied up in day-to-day operations: stock, receivables and cash, less short-term liabilities. Shortage of working capital can stall a profitable business, so it needs separate planning.

Borrowed money repaid over a defined period, usually used for land, machinery or other long-term assets. It carries interest and often requires collateral and a repayment schedule.

An asset pledged to a lender so that it can be sold to recover the debt if the borrower defaults. Lack of acceptable collateral is a major barrier for small and first-time borrowers.

A promise by a third party, often a government-backed trust, to repay a lender if the borrower defaults. It allows small firms to obtain loans without offering their own security.

Equity investment in young, high-growth companies in exchange for shares and a share of future gains. Besides money, investors often supply mentoring, networks and governance support.

Money raised by selling ownership shares rather than borrowing. It needs no fixed repayment, but founders dilute control and share future profits with the new owners.

A business owned and controlled by one person who receives all profits and bears unlimited personal liability for debts. It is simple and cheap to start but weak for raising large capital.

A business run by two or more persons who share capital, profits and management under an agreed deed. Liability is generally unlimited unless it is registered as a limited liability partnership.

A legal shield under which owners can lose only the capital they invested, not their personal assets, for company debts. It encourages investment but brings reporting and compliance duties.

A position in which the owner's personal assets can be used to settle business debts. It is typical of sole proprietorships and general partnerships and raises the personal risk of the venture.

A registered company whose shares are held by a restricted group and are not freely traded on a stock exchange. It offers limited liability and easier access to capital than a proprietorship.

Micro, Small and Medium Enterprises, classified in India by investment in plant and machinery or equipment and by annual turnover. The status unlocks concessional credit, subsidies and delayed-payment protection.

The online government registration that gives an enterprise formal MSME status using PAN, GST and investment and turnover details. It is the gateway to most MSME schemes and benefits.

A national initiative that recognises eligible young companies and offers tax benefits, easier compliance and access to funding support. Recognition requires an innovative model and turnover and age limits.

Applying honest and fair standards to dealings with customers, employees, suppliers and competitors, beyond what the law strictly requires. It builds trust, reduces disputes and protects long-term reputation.

A voluntary commitment by a business to act for the welfare of society and the environment alongside profit-making. It covers areas such as education, health, environment and community development.

Running a business so that economic, social and environmental needs are met without damaging the ability of future generations to meet theirs. It covers resource use, waste, energy and fair treatment of people.

Any party affected by or affecting a business, including owners, employees, customers, suppliers, lenders, the community and government. Balancing their interests is central to ethical decision-making.